Problem
Suppose a new technology makes capital more productive, leading firms to want to borrow more at each rate of interest in order to purchase more capital. Using supply and demand diagrams of the loanable funds market, show what the likely effect on the equilibrium rate of interest would be.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.